An accountant assists individual and corporate clients in maintaining financial records. In addition to accurately accounting for each banking transaction, he prepares budgets, performs audits, provides counsel within the area of investment planning and prepares state and federal tax returns. To become an accountant, a candidate must possess at least a four-year degree within accounting, finance or a related field of study. In addition, many employers prefer to hire those with graduate degrees. Accountants who wish to obtain added credentials may pursue various certifications.

An accountant assists individual and corporate clients in maintaining financial records. In addition to accurately accounting for each banking transaction, he prepares budgets, performs audits, provides counsel within the area of investment planning and prepares state and federal tax returns. To become an accountant, a candidate must possess at least a four-year degree within accounting, finance or a related field of study. In addition, many employers prefer to hire those with graduate degrees. Accountants who wish to obtain added credentials may pursue various certifications.

CPA

The certified public accountant (CPA) credential is the granddaddy of all accounting certifications. The CPA is awarded to accountants who meet specific eligibility requirements and successfully pass the Uniform Certified Public Accountant Examination. The National Association of State Boards of Accountancy administers this exam, which was developed by the American Institute of Certified Public Accountants.

Auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation make up the four sections of the CPA examination. The test takes 14 hours to complete. Although the qualification requirements vary by state, an accountant generally must possess a bachelor’s degree with a concentration in accounting to sit for the CPA exam.

CFP

Administered by the Certified Financial Planner Board of Standards, the certified financial planner (CFP) credential indicates that an accountant is educated in the general practices and ethical standards of the financial planner profession. This certification is available to those who possess at least a four-year degree.

The CFP examination is designed to test a candidate’s financial planner expertise within a variety of areas, including financial statements, cash flow management, financing strategies, education planning and financial planning for special circumstances, such as divorce, disability, terminal illness and monetary windfalls. Accountants must renew the CFA credential every two years.

CMA

According to the Institute of Management Accountants, the certified management accountant (CMA) credential “focuses specifically on financial planning, analysis, control, and decision support, as well as professional ethics.” Administered by the Institute of Management Accountants, it is available to those who possess a bachelor’s degree and two uninterrupted years of professional accounting experience.

A candidate for this certification must take the CMA examination electronically at one of hundreds of testing facilities nationwide. The tests are offered on three different occasions throughout the calendar year. The Institute of Management Accountants estimates that those who successfully pass the exam and receive certification earn a salary that averages $30,000 more annually than those of their contemporaries.

2016 Salary Information for Accountants and Auditors

Accountants and auditors earned a median annual salary of $68,150 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, accountants and auditors earned a 25th percentile salary of $53,240, meaning 75 percent earned more than this amount. The 75th percentile salary is $90,670, meaning 25 percent earn more. In 2016, 1,397,700 people were employed in the U.S. as accountants and auditors.

About the Author

KJ Henderson has more than a decade of HR and talent acquisition experience. He has held roles at a Fortune 100 investment bank, a media conglomerate and at one of NYC's largest executive staffing firms. He currently heads recruitment sourcing at a major movie studio. He read literature at Oxford.